There are many perspectives on what development means and what causes underdevelopment. Todaro defines development as improving living standards, self-esteem, and freedom of choice in a multidimensional process. Marxist views emphasize modes of production while dependency theories see underdevelopment resulting from unequal international relationships that benefit wealthy countries. Popular development theories stress local diversity and emphasize bottom-up solutions over top-down approaches. No single theory can fully explain underdevelopment due to countries' heterogeneity, so development must be understood through an array of changing internal and external interactions over time and place.

1. The Concept of
Development
Definitions, Theories and
Contemporary Perspectives

2. Definitions of Development
 For almost every writer a different
definition of development exists
 Important to first distinguish between:
 a. Development as a state or condition-
static
 b. Development as a process or course
of change- dynamic

3. Meaning of Development-Todaro
 Development is not purely an economic
phenomenon but rather a multi-
dimensional process involving
reorganization and reorientation of entire
economic AND social system
 Development is process of improving the
quality of all human lives with three
equally important aspects. These are:

4. Todaro’s Three Objectives of
Development
 1. Raising peoples’ living levels, i.e.
incomes and consumption, levels of food,
medical services, education through
relevant growth processes
 2. Creating conditions conducive to the
growth of peoples’ self-esteem through the
establishment of social, political and
economic systems and institutions which
promote human dignity and respect
 3. Increasing peoples’ freedom to choose
by enlarging the range of their choice
variables, e.g. varieties of goods and
services

5. Alternative Interpretations of
Development (Mabogunje)
 Development as Economic Growth-
too often commodity output as opposed
to people is emphasized-measures of
growth in GNP. Note here the persistence
of a dual economy where the export
sector contains small number of workers
but draws technology as opposed to
traditional sector where most people
work and is dominated by inefficient
technology

6. Alternative Interpretations of
Development
 Development as Modernization-
emphasizes process of social change
which is required to produce economic
advancement; examines changes in
social, psychological and political
processes;
 How to develop wealth oriented behavior
and values in individuals; profit seeking
rather than subsistence and self
sufficiency
 Shift from commodity to human approach
with investment in education and skill
training

7. Alternative Interpretations of
Development
 Development as Distributive Justice-
view development as improving basic
needs
 Interest in social justice which has raised
three issues:
 1.Nature of goods and services provided
by governments
 2. Matter of access of these public goods
to different social classes
 3. How burden of development can be
shared among these classes
 Target groups include small farmers,
landless, urban under-employed and
unemployed

8. Alternative Interpretations of
Development
 Development as Distributive Justice-
view development as improving basic
needs
 Interest in social justice which has raised
three issues:
 1.Nature of goods and services provided
by governments
 2. Matter of access of these public goods
to different social classes
 3. How burden of development can be
shared among these classes

9. Marxist View of Development
 Emphasizes Mode of Production -
elements and activities necessary to
produce and reproduce real, material life
 Capitalist (market economy) mode
depends on wage labor whose labor
power produces a surplus which is
accumulated and appropriated by the
employer-result is often class conflict in
capitalist societies

10. Neocolonial Dependence Model
 Outgrowth of Marxist thinking-Dos Santos
 Existence of underdevelopment due to historical
evolution of an unequal international capitalist
system of rich country-poor country relations
 Sets up center (developed countries) versus
periphery (developing countries) contrast
 Attempts to become self-reliant and progressive
are surpressed by this relationship
 Moreover certain elites in the developing world
(e.g landlords, entrepreneurs, merchants) enjoy
high incomes, social status and political power
and thus perpetuate inequality and conformity
and are rewarded
 They serve international power groups such as
multi-national firms, assistance agencies (World
Bank) and other agents

11. Sustainable Development
 Defined as development that is likely to achieve
lasting satisfaction of human needs and
improvement of the quality of life and
encompasses:
 Help for the very poorest who are left with no
option but to destroy their environment to survive
 Idea of self-reliant development with natural
resource constraints
 Cost effective development using different
economic criteria to the traditional –i.e.
development should not degrade environment
 Important issues of health control, appropriate
technologies, food self-reliance, clean water and
shelter for all
 People centered activities are necessary-
human beings are the resources in the concept

16. Theories of Development
 1940-50s- Keynesian growth theory -
process of capital of formation is
determined by savings and investment
 Domestic savings are chanelled to
productive investments such as
manufacturing which result –usually-in
high productivity
 Growth is market driven as income levels
rise, savings rises and frees capital for
alternative investment

17. Theories of Development
 Modernization Theory -as noted
previously this theory suggests that
economic dimension alone is insufficient
and adds theories on institutional and
social change
 Incorporates non-economic elements such
as social practices, beliefs, values and
customs (McClelland, Achieving Society)
 Diffusion and speed of change is critical as
is removal of various cultural and social
barriers
 Backward internal structures-rather than
external factors-cause underdevelopment

18. Theories of Development
 NeoLiberal Development Theory- grew
in the 1970s and designed to counteract
impact of Keynesianism
 New emphasis on supply side factors in
development- private initiatives and
market led growth
 Move away from demand stimulation
(interest rate manipulation), import
substitution, state intervention and
centralized planning
 Gradual industrialization with ‘trickle down’
of benefits to all social classes

19. Theories of Development
 Popular Development- what is it?
 Avoids ‘grand theories’ and emphasizes
solutions viewed in context of development
which is part of historical process
 Context of development is constantly changing
in scale and time
 Accommodates geographical and historical
diversity
 Theory of little use to practitioners of
development
 Stresses local diversity, human creativity,
process of social change through pragmatism,
flexibility and context
 Not extent of state intervention but comparative
advantages of public and private sectors and
their complementarity

20. Popular Development and
Environment
 Recognizes high “opportunity costs”
associated with irreversible environmental
damage
 Dealing with environmental problems
requires solutions sensitive to local social
and ecological conditions
 Society and nature relations are affected
by variations in class, gender and ethnicity
 “Reproductive squeeze” forces peasants
to intensify production in fragile
environments

21. Popular Development, Space and
Place
 Bottom up approaches (as opposed to top-
down) to peoples’ participation are important in
this view
 How are various social groups and classes
affected by rural-urban, core-periphery and
other spatial interactions?
 Growing importance of “decentralization” of
decision-making and authority from center to
periphery

22. Popular Development and Power
 How does the power structure affect
development?
 Examine sources of empowerment,
inequality and discrimination
 Need to devise more people centered
approaches which stress empowerment
and participation
 Empowerment as participatory
development seeks to engender self-help
and self-reliance but also effective
collective decision-making

23. What causes
underdevelopment?
 Very easy to focus on characteristics of
development
 For example we know that
underdevelopment is usually
characterized by: low per capita incomes,
low literacy and educational attainment,
lack of basic services- water and power
 But how do we EXPLAIN
underdevelopment?

24. Some Common ‘Theories”
 Old view that absence of development caused
by certain physical environments, particular
cultural traditions and value systems-
environmental and cultural determinism
 Lack of natural resources certainly impediment
to development but not impossible- example of
Japan
 Why has Japan succeeded?

25. Reasons for Japanese Success
 Strong cooperation between government
and business
 Able to adapt to spatial-physical situation
and acquire a maritime prowess
 Early development (Meiji restoration) of
transport and banking systems
 Highly literate population
 Niche development- technology driven

26. Other Common Explanations of
Underdevelopment
 Instability and other adverse internal situations-
political factors
 Some truth to this as extended periods of
turbulence are not conducive to development-
central African nations with tribal rivalries and
ethnic cleansing
 Poor physical environment- lack of rainfall,
poor soils also may pose barriers to
development

27. Vicious Circles- Gunnar Myrdal
 Complex web of interlocking vicious circles
each of which constitutes a chain of cause and
effect relationships where one unfavorable
circumstance leads to another and produces
downward spiral
 High Birth Rate> Large Families>Low PCI>
Poverty> Low Output Per Worker>
 Low PCI> Low Productivity> Poor
Health>Inadequate Housing
 Remedy > Downward spiral not reversible
without massive aid

28. Remedy for Vicious Circle
 Aid would stimulate growth in modern
sector and reduce size of ‘informal’ or
traditional sector
 Thus eliminate dualism and the major
causes of unequal distribution of wealth
 Foreign aid would allow countries to
increase low levels of productivity

29. Another Common Explanation
 Colonialism As Scapegoat
 Attacking vicious circle proponents-do
not explain how these magic circles
come into existence
 Need to view development in historical
perspective as sequence of dynamic
events-explore roots
 Colonialism viewed as the cause of
disintegration and decline- how?

30. Colonialism as Scapegoat
 Indigenous population exploited
 Traditional way of life and self sufficient
mode of production have been destroyed
 Forced to pay taxes and conscripted
labor practices
 Social differentiation increased-
disintegrating force
 Fatal effects on secondary
(manufacturing) and tertiary (service)
sectors- import of cheap goods forced
indigenous artisans out of work
 Discouraged modern industrialization

31. Colonialism as Scapegoat cont’d
 Thus what occurred in these situations
was dependent not autonomous
development
 Colonial powers extracted wealth for
home country-Netherlands, France,
Great Britain
 International division of labor (IDL) and
western dominated trading structure was
created to take advantage of colonial
authority
 IDL=allocation of tasks among laborers
such that each one engages in tasks that
he performs most efficiently and this
promotes worker specialization and
productivity

32. What to Do With Development
Theory ?
 Several theories have been advanced
have been criticized and some also
discredited—to be replaced by other
theories
 Third World is very heterogeneous-
dissimilar in terms of population,
resources, climates, culture , economic
structure and location
 Unlikely that one theory will be powerful
enough to explain underdevelopment
everywhere

33. What to Say About Development
Theory ?
 Underdevelopment must be seen as a
product of an array of complex and
continuously changing interactions
between:
 1. Past and Present
 2. Natural and Human Environments
 3. External and Internal Conditions
 Multitude of obstacles to development
vary with place and time
 Critical to remember that the above
theoretical ideas aid us in asking
pertinent questions